New York State has its own commercial debt collection laws and federal laws. New York recently changed its debt collection laws to give consumers more protection. In August of 2015, the new rules went into effect. Only collection agencies and debt buyers are subject to the new regulations. They don’t apply to an original creditor trying to collect its debts, and they don’t apply to business debt collection. Commercial collection laws in Queens can be confusing.
Companies that buy debt are becoming more and more popular. On the other hand, the debt-buying industry has almost no data about the debts it buys and tries to collect.
Commercial Collection Laws In Queens
Debt buyers frequently try to collect debts that have already been paid or settled (dubbed “zombie” debts because they don’t go away) or for which the limitation period (the amount of time the debt buyer has to sue you) has expired.
New York hopes that by including debt buyers in the new law, it will combat some of these abuses while also providing information to consumers about the debts being pursued.
The new rules require commercial debt collectors continue providing you with specific details either when they first contact you or within five days of that contact. The following is a list of the information that is required:
The following is a list of the information that is required:
Information about your consumer rights in general
The debt collector should provide you with a list of the federal Fair Debt Collection Practices Act-prohibited collection activities (FDCPA). It must also specify the types of income exempt from collecting the debtor receiving a judgment against him.
Information concerning the debt
The debt collector is required should provide you with details about the original creditor’s identity as well as a detailed financial reporting of the debt.
A new trend is for certain companies to buy debts, which are sometimes very old. You may have no recollection of the original debt.
If the debt collector lacks these details, they will be unable to comply with new regulations and will be unable to collect the debt legally. The debt collector should provide you with the following information:
- The sum of the debt when it was sent to collection by the original creditor.
- Since the debt was sent to collection, the amount of interest accrued.
- Other fees.
- Payments since the debt were sent to collection.
The limitation period explained.
The limitation period governs the time you have to pursue debt collection. Under the applicable law, some debt payments are just too old to try and collect on.
When it comes to commercial collection laws in Queens, the commercial collector should be able to tell if the matter is settled. If the debt collector understands or should understand that the debt is past due, they must take the following steps:
- Notify you that the limitation period may have passed.
- Inform you that suing to collect a debt for which the statute of limitations has expired violates the federal FDCPA, but merely attempting to collect the debt without suing is permissible.
- Tell you that you don’t have to admit to owing the debt, promise to pay it, or give up your rights under the statute of limitations.
- Tell you that if you acknowledge owing the debt or agree to pay it, the limitation period will begin to run again, allowing the debt collector to sue you for the debt.
If you oppose that you owe the debt or believe the amount due and owing is inaccurate, the new regulations provide you with some protection.
You have the right to demand that the debt collector let you have documentation proving that the debt is associated with you and that the amount is accurate.
The debt collector has 60 days to provide you with this information. The debt collector is restricted by law from attempting to collect the debt until the necessary information is provided.